EU to create rural development fund

The European Commission is proposing to create a single rural development fund with one programming and one control instrument from 2007 onwards.

It follows conclusions of a major conference, attended in Salzburg, Austria, earlier this year by stakeholders, academics and politicians.

Delegates concluded that a living countryside is not only in the interests of the rural society but of society as a whole. They agreed that preserving the diversity of Europe's countryside and encouraging the services provided by multifunctional agriculture is of ever growing importance.

The conference also agreed that a significant simplification of EU rural development policy is both necessary and urgent.

EU Commissioner Dr Franz Fischler said the Commission's subsequent proposal will render the rural development policy more effective, coherent and transparent.

He said that, while farmers are the backbone of Europe's rural economy, they are not alone in the countryside.

The E-society has made it possible for all kinds of small- and medium-sized enterprise, not to mention some large ones, to operate far from the urban environment.

Other industries such as tourism and rural crafts, as well as all sorts of environmentally linked projects, are also extremely important.

During his time as commissioner, Mr Fischler said that rural development has moved from being an addendum to the CAP to being a fully fledged policy. In fact, it is the second pillar of the CAP with a €7 billion a year budget.